ExxonMobil Raises Rovuma Stake to 50% Ahead of 2026 Final Investment Decision
Key Facts
ExxonMobil said in an official disclosure on October 30 that it had reached an agreement to raise its working interest in Mozambique’s Rovuma LNG projects to 50%. The agreement gives the company a larger position in a project with planned capacity of about 18.6 million tonnes a year, with startup expected in 2031. The company’s statement did not disclose the counterparty, the value of the exchange or the assets involved, although Bloomberg coverage attributed the agreement to an exchange with Eni. The announcement comes as Area 4 partners move toward a final investment decision during 2026. That links the increased stake to a phase before construction begins, while the company said contractor selection is preparing it to move forward once the decision is made.
The October 30 disclosure does not explain how the new target stake will affect Area 4 partners’ ownership or the allocation of assets and roles among them. The previously published development arrangement put ExxonMobil in charge of developing the onshore LNG facility, while Eni handled offshore operations, but that arrangement does not resolve the impact of the new agreement. International Monetary Fund data show that state-owned ENH has a 10% stake in the Rovuma project, financed through loans from project partners. The 50% figure therefore describes ExxonMobil’s interest in the project and, on its own, is not enough to determine the ownership structure after the agreement is completed. The company did not disclose the financial consideration or details of the assets that may be transferred under the agreement.
The project is progressing alongside preparatory work and engineering and field contracts. On September 29, SLB announced that its OneSubsea joint venture had received a contract from ExxonMobil Moçambique, on behalf of Area 4 partners, to supply subsea production systems for Phase 1. The contract covers well trees, subsea manifolds, umbilicals and control systems, as well as engineering, procurement, manufacturing and installation services. SLB said OneSubsea plans to establish a service base in Mozambique to serve operators in the region and support local training, employment and supply chains. The offshore design covers 18 wells and a network of subsea pipelines and manifolds, according to ExxonMobil.
Area 4 partners said on September 10 that they had awarded early contracts worth nearly 1.1 billion dollars for long-lead equipment and early site work. The arrangements also include the selection of the Saipem and Jan de Nul consortium for an engineering, construction and installation contract for offshore work, along with a letter of intent for engineering and technical services. Supply-base service contracts were awarded to two Mozambican companies to provide logistical support and operate the base in Pemba. The contracts are intended to advance preparatory work ahead of the final investment decision, with some work assigned to local companies. ExxonMobil’s managing director in Mozambique said contractor selection is preparing the company to begin construction after the decision and deliver the first LNG cargo on schedule.
The Phase 1 onshore design includes 12 modular liquefaction trains with expected total capacity of 18.6 million tonnes of LNG a year, according to ExxonMobil’s project page. The company expects startup in 2031, the same date the IMF gives for the start of Rovuma production. The fund places the project within a broader wave of gas development in Mozambique: Coral South began production in 2022, and Coral North is expected to begin production in 2030. For the ExxonMobil-led Coral Mamba project, the fund expects approval in 2026 and production to start in 2031. These dates span projects already operating and others still in development and approval stages.
The project’s significance extends beyond the production schedule to the financial obligations tied to gas projects. The IMF estimated ENH’s debt linked to these projects at 4.6 billion dollars, equivalent to 19.6% of GDP in 2024. The fund expects it to rise to 20 billion dollars by 2045, or 22.3% of GDP. ExxonMobil, meanwhile, says the Rovuma project could add about 6 billion dollars to Mozambique’s economic activity and provide opportunities for around 7,500 Mozambicans during construction. These figures remain estimates disclosed by the company and the fund, while the project’s path is tied to the final investment decision expected during 2026.
The company’s disclosure came on a day when ExxonMobil shares rose from a close of 183.29 dollars on October 29 to 187.25 dollars on October 30, according to EL7 data. The disclosure confirms an increase in the working interest in Rovuma to 50%, but does not specify the consideration or terms of the exchange, or explain its effect on other partners’ stakes. The next announced milestone for the project remains the final investment decision targeted by Area 4 partners during 2026. After that, ExxonMobil’s managing director in Mozambique says the company is ready to begin construction and deliver the first cargo on schedule. ExxonMobil and the IMF put startup of the Rovuma facility in 2031.